The two-day Conference on Sustaining Taiwan's Economic Development is scheduled to open today amid sharp disagreements, after a preliminary meeting yesterday decided that the conference would not discuss two key cross-strait economic liberalization measures.
The Mainland Affairs Council, which presided over yesterday's meeting, said that a further loosening of restrictions on cross-strait direct cargo and passenger charter flights and a relaxation of the 40 percent China-bound investment cap for Taiwanese businesses would not be on the conference's agenda.
Those measures are supported by business groups, the pan-blue camp and some Democratic Progressive Party (DPP) moderates, but opposed by others in the pan-green camp.
"Opinions on what to do about the 40 percent China-bound investment cap were too divided ... and [the conference] would not have been able to reach a unanimous conclusion on the issue," the council said in a press statement explaining the decision.
The decision came after vehement opposition to the two measures from Taiwan Solidarity Union legislators and a number of academics and former presidential aides.
flexibility
But later yesterday, a Cabinet spokesman indicated that there might be some flexibility on whether the two issues would be discussed.
"We respect the decision [made at yesterday's meeting]. But, it does not mean that these two issues will definitely not be discussed during the conference, if members of the conference feel there is a need to do so," Cabinet Spokesman Cheng Wen-tsang (
Cheng made the remarks at a press conference following yesterday's weekly Cabinet meeting.
The two issues have become a focus ahead of the conference, because the majority of local business have been expecting that Premier Su Tseng-chang (
"Those decisions or agreements which will be made through the conference will become important references for the government to make and carry out its policies in the future," Cheng said. "However, we, as the government, cannot decide what to discuss and what to skip in the conference."
tuning out
Meanwhile, a recent survey shows that the public has been paying scant attention to the run-up to the conference and expects it to have little impact on their lives.
According to a survey conducted for the Taiwan Advocates think tank, 75 percent of respondents were unaware of the conference, while 61 percent thought that the event would be unlikely to revive the economy or enhance the nation's well-being. The survey polled 1,148 people in phone interviews on July 18 and July 19.
In addition to the cross-strait economic issues, tax issues relating to how the Statute for Upgrading Industries (
The Ministry of Finance has been standing firm against business groups' request for tax reductions, but some other controversial topics have been left unresolved pending the outcome of the conference.
tax incentives
One key issue is the finance ministry's demand that tax incentives granted to firms investing in automated equipment should also be overhauled if restrictions on taxing companies' undistributed surplus earnings are to be relaxed, as requested by business circles and the Ministry of Economic Affairs.
Minister of Finance Ho Chih-chin (
But at the same time, the ministry plans to make the tax incentives for automated equipment investments only applicable to key investment projects and small and medium-sized enterprises (SMEs) to avoid tax abuses, he said.
The finance ministry also urged revoking or restricting the five-year tax-exempt treatment granted to emerging, strategic industries. The economic affairs ministry has planned to slash two-thirds of the 305 tax-free items in exchange for the finance ministry's support, according to an Economic Daily News report yesterday.
The limited application is expected to affect semiconductor and flat-panel sectors.
Conference delegates are also expected to discuss the management of enterprises in which the government owns shares, how to effectively dispose of national assets, the privatization of state-run institutions, and how to boost usage efficiencies of state-owned land.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College